Settlement nets $1.8M of debt relief for New Mexico students

ALBUQUERQUE, N.M. (AP) — A settlement will provide $1.8 million in debt relief for New Mexico students who were enrolled in certain for-profit schools and online courses.

Attorney General Hector Balderas says more than 700 students in New Mexico are eligible for relief under a multistate settlement with Illinois-based Career Education Corp.

Nationally, the settlement includes the CEC's agreement to reform its recruiting and enrollment practices and to forgo collecting about $493.7 million in debts owed by 179,529 students.

The company also has agreed to pay $5 million to the states. New Mexico will receive about $75,000.

State attorneys general alleged that CEC engaged in unfair and deceptive practices, including misleading prospective students about actual costs, the transferability of credits, accreditation, program offerings and accurate job placement rates.